Arizona Moves Closer to Establishing Digital Asset Reserve as Bitcoin Legislation Advances

Arizona recently saw two strategic reserve bills clearing the House Rules Committee on March 24. The bills, which aim to create state-managed reserves backed by confiscated crypto assets and public funds, will now head to the House floor for a full vote.

The proposed legislation consists of the Strategic Digital Assets Reserve Bill (SB 1373) and the Arizona Strategic Bitcoin Reserve Act (SB 1025). If passed, Arizona would be authorized to build a crypto reserve funded by both seized digital assets and new public investments.

The Republican-controlled House of Representatives (33-27) gives the bills a solid chance of advancing. However, the final challenge could be Democratic Governor Katie Hobbs, who has vetoed 22% of bills this year—the highest rate of any U.S. governor.

Bitcoin and Digital Assets in Arizona’s Treasury Plans

SB 1373 proposes the creation of a state-managed digital asset reserve composed of crypto holdings confiscated through criminal proceedings. Arizona’s treasurer would oversee the fund, with a 10% annual cap on new investments from the fund’s total value.

To enhance returns, the treasurer would also be authorized to loan out the fund’s assets, provided it does not expose the reserve to undue financial risk.

Meanwhile, SB 1025 specifically targets Bitcoin investment. The bill would allow Arizona’s Treasury and state retirement system to allocate up to 10% of available funds into Bitcoin. Additionally, should the U.S. establish a federal Bitcoin reserve, the legislation permits Arizona to store its BTC holdings in a segregated account within the federal reserve.

Other U.S. States Also Pushing for Bitcoin Reserves

Arizona’s crypto-friendly legislation is part of a broader trend, with other states pursuing similar reserve bills. On March 6, the Texas Senate approved its Strategic Bitcoin Reserve Bill (SB-21) in a 25-5 vote. However, it still requires House approval and the governor’s signature to become law. In response, Democrat Representative Ron Reynolds introduced a new bill to cap Texas’ Bitcoin reserve at $250 million, which was previously uncapped.

Meanwhile, Oklahoma’s House passed its Bitcoin Reserve Bill (HB1203) by a 77-15 vote on March 25, sending it to the state senate for further consideration. However, Utah’s recent Bitcoin legislation removed all references to creating a reserve, signaling a more cautious approach.

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